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Posted on 04/17/2026 6:47:35 AM PDT by Diana in Wisconsin
Swiss chocolate maker Barry Callebaut on Thursday slashed its operating profit forecast, citing falling cocoa prices, industry overcapacity and potential supply disruption linked to the Iran war.
The company, which is the world’s largest chocolate maker, said it now expected earnings before interest and tax (EBIT) to decrease by “mid-teens” percentage in its 2025 to 2026 fiscal year.
The outlook reflects a significant downgrade from just three months earlier, when the Zurich-headquartered company said it was preparing for a return to growth.
Hein Schumacher, who was appointed Barry Callebaut CEO in late January, said Thursday that the firm has an “unparalleled market position” and fundamental growth opportunities, while warning of a “turbulent period” of industry disruption.
“In the first half of our fiscal year, cocoa bean prices decreased, which is encouraging for future chocolate market momentum and supported strong free cash flow generation,” Schumacher said in a statement.
“Yet the unique speed of the market decrease combined with a competitive overcapacity market, volume declines and supply disruption impacted EBIT performance and adjusted our profitability outlook for the year as we prioritize restoring volume and leading the market back to growth,” he added.
Shares of Barry Callebaut fell as much as 17% on Thursday. The stock was last seen trading off by around 15.8% shortly after 2:30 p.m. London time (9:30 a.m. ET).
Cocoa prices fell 0.72% on Wednesday, reaching $3,537.28 per tonne. Despite rallying over the past week, cocoa prices have slumped 41.6% since the start of the year, and are down 57.6% over the past 12 months, according to Trading Economics data.
Like most commodities, the closure of the Strait of Hormuz has impacted cocoa prices with restricted supply and higher costs. However, much stronger harvests compared to recent years, when prices have soared, have kept a lid on cocoa costs.
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CNBC trying, and FAILING to make cheaper chocolate A Bad Thing because Trump is Hitler, LOL!
Dorks.
The world faces 2 enormous problems:
1) Prices for Product A are rising. This is a disaster. It will destroy businesses and jobs. We may never recover.
2) Prices for Product B are falling. This is a disaster. It will destroy businesses and jobs. We may never recover.
I stopped eating Chocolate long ago , no win/lose for me ,LOL
20 years ago they said we would be out of chocolate by now because of climate change and over demand.
There was just a huge spike in cocoa prices last year. This isn’t a collapse. This is a correction. I remember the tail-end of the 10 cent candy bar (8 cents at Lake Sunapee in New Hampshire). Now $2.00 is not uncommon for the same bar with or without chocolate (e.g. regular Payday has no chocolate).
As of April 2026, with the Strait of Hormuz effectively blocked due to the Iran conflict, cocoa prices have been edging higher for exactly these reasons - nat gas and fuel. So while no chocolate physically passes through the Strait, its closure still ripples through the entire confectionery supply chain.
How so? Do we have to go through the Strait of Hormuz to get to Ecuador, Brazil, Ghana and Ivory Coast?
Buy the chocolate at Aldi...sooooo good...
“This isn’t a collapse. This is a correction.”
Thank you!
Does cocoa go through the straits to Switzerland?
As of a few minutes ago, President Trump announced that the Strait is back open for business.
This is the shortest PANIC in the entire PANIC HISTORY of the Enemy Media, LOL!
which chocolate at Aldi?
any of the dark.
No. But Liquified Natural Gas does.
You need heat to make Chocolate.
So global warning won’t take care of this?... ;) /s
Any problem that arises will be the cause of the Iraq conflict
So.....you’re operating profit goes down when your raw material price goes down....
I must me missing something here.
“slashed its operating profit forecast, citing falling cocoa prices,”
The dark chocolate bars or dark baking chocolate? I mean, do you melt down their candy bars and add stuff to them? I know they have two brands.
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